A study in partnership with InvestmentNews Research
Advisors and their clients are searching for ways to navigate these uncertain times, especially as many investors are planning for, approaching or in retirement. Alternative investments may help – and our recent survey shows both advisors and individuals are interested in increasing their allocations to alternatives but desire more education and better conversations.
FS Investments conducted a study in partnership with InvestmentNews Research to gain deeper insight on advisor and investor goals and their knowledge of alternatives’ benefits, drawbacks and role in constructing diversified portfolios.1
Watch our video for the highlights and read the report to learn why education may be key to better investing outcomes.
- Advisors aim to increase client allocations to alternatives from 5% to 10% over the next 3 years and the number of products used from 4 to 6.
- Investors are open to alternatives and advisors believe alternatives can help meet investor needs. Yet conversations about alternatives between advisors and clients are not taking place.
- The largest impediment to more productive client conversations about alternatives is likely a knowledge gap. Advisors disclosed they need more education on alternatives and believe their clients do as well.
- Conversations between advisors and investors should focus on explaining “why alternatives” and portfolio applications for various asset classes and strategies.
1 FS Investments and InvestmentNews Research survey was administered through Qualtrics to a sampling of 864 individual investors between August 14, 2019 and September 6, 2019 and 342 advisors between August 22, 2019 and September 9, 2019. For their participation, advisors were offered a complimentary copy of the study and investors were eligible to enter a drawing for a chance to win one of five $50 Amazon gift cards.
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